Under micro manufacturing enterprises, the smallest entity, the investment should be less than Rs. 25 Lac in plant and machinery, whereas, the investment in micro service enterprises should not exceed Rs. 10 Lac.
In small manufacturing enterprises, the investment should be between Rs. 25 Lac and Rs. 5 Crores in plant and machinery, while in small service enterprises the investment limits between Rs. 10 Lac and Rs. 2 Crores.
In medium manufacturing enterprises, the investment should be between Rs. 5 Crore and Rs. 10 Crores in plant and machinery, and for medium service enterprises it should be between Rs. 2 Crore and Rs. 5 Crores.
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Frequently Asked Questions
Cheaper bank loans
The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.
Easy access to credit
PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.
Quicker approvals from government bodies
Business registered under MSME are given higher preference in terms of government license and certification.
MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
Access to tenders
There are multiple government tenders which are open only to MSMEs to promote small business participation in india
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